BRRRR help in Atlanta

[Nathan Trail]

Looking for some advice on my first Brrrr. Anyone in Atl have experience wi to this method as I am about to do my first one. Not sure how the “refinance” part works and what costs I should plan on. Would welcome a phone call with anyone who has done this. 

[Curt Smith]

Hi, Its always a frustration when a book is read (etc) and someones real deal doesn't measure up to Guru idealistic talk.  ;(

Quentin's story is what I hear in the REIA I'm in, where folks are buyinng rentals and at some point cash out REFI. The typical I see is that cash is being left in the deal. I always thought BP/etc's pitching of a great (but not new) tactic of buy-fix-rent-wait to season - cash out refi - re deploy what ever cash you get back, rarely if ever 100% of what you started with...

Folks should not be disappointed in their hard work and execution if they only get back a fraction of what they started with!!!  You did great, are doing great.  Just save up some more till you can buy your next!!!    You are doing great!

There's many reasons for not getting back all you started with;

- todays market is so hot its impossible to get a deep discount.

- rehab ate more then you thought

- the effort to create forced appreciation via rehabbing is harder then said

- bad luck starting in Jan or so, Fannie sent out guidance on cash out rental REFIs tightening up underwriting and like FHA/VA appraisals being done conservatively now rental appraisals are too.

=== 

You can wait 9 mo to a year to get a bit more appreciation?  You run the risk of interest rates going up.    My view is wait 6 mo after renting up, the seasoning to do a fannie REFI based on new appraisal, and take what they give you.   keep living below your means and save up the next down+rehab pot.

Best of luck to you. BTW the best tip I can give is for everyone to be in at least one local REIA. Google REIA Georgia. Find orgs in meetup.org as well. This is a team sport and the most experienced investors are in the REIAs from my experience. I like to help new folks buy rentals as I was helped by experienced folks some many years ago. Best of luck.